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Are you burning money on car insurance? Premiums have shot up recently

The AA say they’ve gone up by more this year than any time in a decade.

Image: Shutterstock

THE COST OF car insurance has shot up by more this year than at any other time in the last decade, according to a new survey.

The AA Cost of Motoring survey found that any potential savings for motorist from the drop in fuel costs have been more or less wiped out by increased insurance.

Naturally, the cost of running a family car for a year varies greatly but the AA puts the average cost at €10,593. That’s down just €17 despite falling fuel prices.

On average, insurance premiums rose by 20% this year with the cheapest CO2 emission band having an average insurance of €906.61, that’s up from €705.51 last year.

The average yearly insurance for the most expensive emission band is €1,766.23, also up significantly on the €1,471.66 from last year.

PastedImage-65454 Source: theaa.ie

“This is the biggest one-year rise in insurance prices in well over a decade,” says the AA’s Conor Faughnan who adds that insurers are nervous about rising claims.

All prices are rising but if you have had no claims or points in the year and have done nothing wrong it feels unfair. Unfortunately the trend is set to continue for the rest of the year and into 2016 in the AA’s view.

The average price of petrol for last month was at 145.3 cent per litre, just over 7% less than it was 12 months ago.

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For a car in the motor tax Band B, which is the second most efficient category, this works out as a saving for the year of €144.74 based on an annual mileage of 16,000 km.

Cost of motoring 2014

PastedImage-40319 Source: theaa.ie

What about you, have you insurance premiums gone up recently? Let us know in the comments. 

Read: This is Ireland’s most popular car >

Read: Drive an old car? It’s about to become harder to get insured >

About the author:

Rónán Duffy

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